The psychosocial component of an operational risk management model : risky business in Tanzania

Abstract:

The utilisation of an operational risk management (ORM) model is one of the
compulsory activities during mergers and acquisitions in the financial sector.
However, the implementation of such a model is often not as effective as intended. A
cause of this might be situated in human behaviour and the influence of cultural
differences, especially during cross-border business. This study determined how
Tanzanians perceive risk, and identified the psychosocial components that affected
the implementation of an ORM model in a target organisation in Tanzania. This
resulted in the development of a conceptual framework, which integrated these
psychosocial components into a theoretical psychosocial model of OR management.
This qualitative study was situated within the hermeneutic phenomenology research
paradigm. During the research, 35 semi-structured in-depth interviews were
conducted, providing rich data. Participants were selected by means of criterion
sampling. Most of the interviews sessions were conducted with one participant
present. However, some of the interview sessions involved two or three participants
resulting in a total of 46 participants being interviewed. Data were analysed using the
hermeneutic circle, and incorporated content analysis.
The findings of the study are of value to both the fields of psychology (social and
organisational psychology) and OR management. Engaging in cross-border
business is in itself a ‘risky’ business. Identifying the psychosocial components and
incorporating them into ORM models, enables organisations to implement their ORM
models more effectively (Renn, 2008). The theoretical model developed as a result
of this research enables industrial and organisational psychologists and OR
managers to manage growth initiatives, such as cross-border mergers and
acquisitions in the financial industry, more accurately. Industrial and organisational
psychologists and risk managers will consequently understand better how
psychosocial components shape people and this will enable them to adapt their
management approach accordingly.

Citation:Van Niekerk, Annelize (2016) The psychosocial component of an operational risk management model : risky business in Tanzania, University of South Africa, Pretoria, <http://hdl.handle.net/10500/24542>

Files in this item

Copyright Statement

Items in UNISA Institutional Repository are protected by copyright, with all rights reserved, unless otherwise indicated. Items may only be viewed and downloaded for private research and study purposes. Please acknowledge publications according to acceptable standards and norms.